HUYA(HUYA)2024-10-17 06:38Investment Rating - The report maintains a "Buy" rating for the company with a target price adjusted to $4.5 [2][8]. Core Insights - The company's revenue is expected to slightly decline by 1% quarter-on-quarter to RMB 1.53 billion in Q3, primarily due to weak performance in the live streaming business, which is projected to decrease by 8% to RMB 1.13 billion [2]. - Game-related services are anticipated to see significant year-on-year growth, reaching RMB 380 million, accounting for 25% of total revenue [2]. - The gross margin is expected to decrease by 0.3 percentage points to 13.6% due to declining live streaming revenue and increased event costs [2]. - The revenue forecast for 2024 has been adjusted to RMB 6.11 billion, with a projected net profit of RMB 272 million and a net profit margin of 4.5% [2][5]. - The company has approximately $800-900 million in cash on its balance sheet, which is comparable to its current market capitalization [2]. Financial Summary - Revenue for 2024E is projected at RMB 6,109 million, reflecting a decrease of 2.14% from previous estimates [5]. - Gross profit is expected to be RMB 831 million, down 3.26% from prior forecasts [5]. - The adjusted net profit for 2024E is estimated at RMB 272 million, a decrease of 1.39% from earlier predictions [5]. - The adjusted net profit margin is forecasted to be 4.5%, consistent with previous estimates [5].